Price the points
Multiply the loan amount by the points percentage.
Mortgage points math
How much do mortgage points save?
One point always costs 1% of the loan amount. It does not always reduce the rate by the same amount. The only reliable savings answer comes from comparing the payment on a zero-point quote with the payment on the points quote.
The direct answer
Mortgage points save the difference between two otherwise comparable monthly payments, not a guaranteed fraction of the rate.
Point cost equals loan amount multiplied by point percentage. Break-even months equal added upfront cost divided by monthly principal-and-interest savings.
Points break-even calculator
Decision rule
Points need time to earn back their cost.
Find payment savings
Subtract the lower-rate P&I payment from the zero-point payment.
Compare timelines
Paying points is hard to justify if you expect to replace the loan before break-even.
Use your numbers
Move from explanation to comparison.
Lenny can analyze a Loan Estimate or compare matched rate offers using the same cost-and-timeline logic.
Official sources
Educational guidance only. Examples are hypothetical and do not include every loan cost or program rule. Final terms, pricing, eligibility, and disclosures must be confirmed by a licensed mortgage lender. Reviewed July 27, 2026.